Homeownership For All: Grow Your Sphere With Outreach To Hispanic Home Buyers
Hispanic Heritage Month might have come to an official close last Friday, but we are squeaking in one last big celebration: you can now pre-order Su Primera Casa, the Spanish translation of Your First Home. We have also released the first-time home buyer seminar materials fully translated, available now (for free!) on KW Connect.
These resources are part of being committed to our culture of equity for all — in both meanings of the term. Equity can mean being fair and equal to all concerned, but as you know, it also means the amount of ownership one has in a property.
Equity is one of the greatest drivers of generational wealth available, and it has not always been available to all people equally. Helping to bridge the homeownership gap for these communities is truly a win-win. You get to grow your business and they get to start on the homeownership adventure, with all of its benefits.
The Urban Institute predicts that the Hispanic community will account for 70 percent of homeownership growth over the next 20 years. They will want to work with real estate professionals that understand their challenges and needs.
Young, Willing, And Ready
In 1990, just 7.3 percent of young households (headed by someone younger than 65) in America were Hispanic. By 2020, that had more than doubled to 16.4 percent. The Urban Institute predicts that this share will continue to increase in the next two decades, and that by 2040, more than 20 percent of young households will be Hispanic — triple the share in 1990.
This large community is aging into the first-time home buyer market, and they will need agents to guide them through their biggest challenges.
Two Big Challenges: Market And Inventory
In 2021, the National Association of Hispanic Real Estate Professionals (NAHREP) conducted its first-ever qualitative study, interviewing 25 top-producing, “buyers-side” Hispanic real estate practitioners who collectively helped 2,612 households enter homeownership during that year.
According to the study, two factors affected the success rate of these transactions:
1. Hostile Market For First-Time Home Buyers Using Assistance
In a competitive real estate market that created conditions where cash buyers and multiple-offer scenarios were the norm, Hispanic first-time buyers found that offers for homes based on government-assisted mortgage programs were disadvantaged. These loans, like Federal Housing Administration (FHA) loans, are disproportionally used by minority communities. Latinos are twice as likely to use FHA loans to finance their homes than their non-Hispanic White counterparts.
To help address this challenge, agents and lenders are going to need to expand their financing options and knowledge so they can assist potential buyers.
2. Disproportionally Affected By Low Inventory
Although all buyers have been challenged by historically low housing inventory across all markets, first-time Hispanic home buyers are impacted at a higher rate.
Part of this stems from Hispanic communities being located in places that are experiencing the most severe housing inventory and affordability challenges in the country. These areas, and in Texas, California, and Florida especially, have Hispanic populations that have grown by over a million people in recent years.
Increased construction and mobility would help address this challenge, not only for minorities, but for all first-time buyers.
Be The Expert Of Choice — Grow Your Sphere
In SHIFT, Gary Keller and Jay Papasan write, “Buyers need professional advice in a shift more than ever.” By becoming your potential clients’ economist of choice, you can help them recognize when they need to act.
With a mindset of helping them understand the real estate market, reach out to new communities and connect with your sphere. You’ll find that you can guide people on decisions surrounding whether it’s time to try and buy or sell their homes. Someone will always need your skills and expertise during the ever-changing market.
As you lead generate, consider broadening your sphere into new communities. You’ll be able to add to your database and gain market share.
If you’d like some resources to help with your outreach, you can now pre-order Su Primera Casa, the Spanish translation of Your First Home. The first-time home buyer seminar materials have also been fully translated and available now on KW Connect.